A Tie-Up Would Be Complicated and Expensive

STOCKHOLM—Nokia Corp. won't pursue an acquisition of parts of Alcatel-Lucent after weighing various options related to the French network-gear maker's business lines, according to people familiar with Nokia's plans.

Nokia, in the process of shedding its unprofitable handset business to focus on wireless networks and other ventures, recently looked at whether Alcatel's IP-routing and wireless divisions would fit with Nokia's NSN...